Hi All,
Hopefully, a few might be able to give opinions on my situation with regards a negative equity mortgage and trying to move to a new house and what would be the best option to do with the existing property. Been thinking about this for a while whether selling or renting is feasible but haven't got any advice really yet.
Current Situation:
Tracker mortgage with BOI (ECB +1.1%) so 1.15%
Mortgage balance of € 205,000
House Value approx. € 145,000
Negative Equity € 60,000
Term Remaining on Mortgage 27 years.
Salary €70,000. Partner is a teacher but not on a permanent contract. Salary in the last few years ranging from €25k to €35k. We have 2 children. Both aged 35
Savings : €50,000
We have been gifted a site that we love to build on, more room etc growing family. Based on type and size of house we would like to build, we would be looking at a build cost of approx. €250,000 (Finished House could be worth in region of €350,000)
Thoughts on what would be the better way to proceed ?
i) Rent existing house, use savings for new House, and new Mortgage of 200k
ii) Neg Equity Tracker mover mortage instead. Sell house, take €60k deficit over into new mortage at discounted rate for 5 years. New Mortage of 260k ?
In the second scenario, does anyone know if savings are used to clear down negative equity or can they be put towards cost of new build/purchase ?
Also, last question, in scenario 1, is it possible to rent the house, keep the existing mortgage with BOI, and look around other providers for a new mortgage for the new build ?
Thanks !
Hopefully, a few might be able to give opinions on my situation with regards a negative equity mortgage and trying to move to a new house and what would be the best option to do with the existing property. Been thinking about this for a while whether selling or renting is feasible but haven't got any advice really yet.
Current Situation:
Tracker mortgage with BOI (ECB +1.1%) so 1.15%
Mortgage balance of € 205,000
House Value approx. € 145,000
Negative Equity € 60,000
Term Remaining on Mortgage 27 years.
Salary €70,000. Partner is a teacher but not on a permanent contract. Salary in the last few years ranging from €25k to €35k. We have 2 children. Both aged 35
Savings : €50,000
We have been gifted a site that we love to build on, more room etc growing family. Based on type and size of house we would like to build, we would be looking at a build cost of approx. €250,000 (Finished House could be worth in region of €350,000)
Thoughts on what would be the better way to proceed ?
i) Rent existing house, use savings for new House, and new Mortgage of 200k
ii) Neg Equity Tracker mover mortage instead. Sell house, take €60k deficit over into new mortage at discounted rate for 5 years. New Mortage of 260k ?
In the second scenario, does anyone know if savings are used to clear down negative equity or can they be put towards cost of new build/purchase ?
Also, last question, in scenario 1, is it possible to rent the house, keep the existing mortgage with BOI, and look around other providers for a new mortgage for the new build ?
Thanks !